The Globe and Mail reports in its Wednesday edition that as bond yields rise, smaller, unprofitable companies and those reliant on debt are at greater risk in the U.S. stock market. A Reuters dispatch to The Globe reports that economically sensitive sectors like consumer and housing-related companies may struggle, while dividend-paying stocks could lose attractiveness due to better Treasury yields. Technology could see pressure, particularly among shares that gained significantly during the market's recent rally, such as semiconductors. A global bond rout continued to cloud markets this week, as rising energy prices stemming from the Middle East war drove inflation worries and the potential for interest-rate hikes around the world. Rising benchmark yields tend to pressure equity valuations, and U.S. stocks could be particularly exposed with major indexes around record highs. Companies and consumers face higher borrowing costs, which can weigh on economic growth and corporate profits. Higher yields can also make fixed income returns more competitive. Many smaller companies rely on debt financing, which becomes more expensive as yields rise. Stocks that investors rely on for their strong dividends could face pressure.